2026 State CIO Priorities: What Michigan Municipalities Need to Know

Michigan municipalities are entering 2026 under increasing pressure to modernize services, protect sensitive data, and remain compliant — all while operating under tight budgets and staffing constraints.

The National Association of State Chief Information Officers (NASCIO) has released its 2026 State CIO Top 10 Priorities, providing a clear roadmap for how public-sector IT is evolving nationwide. While the report focuses on state governments, its priorities are highly relevant for Michigan cities, townships, counties, and local authorities navigating cybersecurity threats, digital service demands, and regulatory oversight.

With clients in the top 20% of Michigan municipalities (by size), we're experts in supporting Michigan municipalities with cybersecurity-first IT strategies. Below, we break down NASCIO’s 2026 priorities through a Michigan municipal lens, with a focus on security, compliance, and operational resilience.

1. Artificial Intelligence (AI, GenAI, and Machine Learning)

AI is the top priority for state CIOs in 2026, with strong emphasis on governance, ethical use, data quality, privacy, and security.

What this means for Michigan municipalities:

• AI tools are already entering government workflows through chatbots, document automation, and analytics

• Without governance, AI can introduce data exposure and compliance risks

• Public-sector transparency and data handling standards must be enforced

BAE Networks insight: We help municipalities evaluate AI use cases safely by establishing policies, access controls, and security guardrails before adoption.

2. Cybersecurity & Risk Management

Cybersecurity remains a top priority as municipalities face ransomware, phishing, and supply-chain attacks.

Key focus areas for Michigan local governments:

• Whole-of-government cybersecurity strategy

• Third-party and vendor risk management

• Security awareness training for municipal staff

• Alignment with recognized security frameworks

Why it matters locally: Michigan municipalities are frequent targets due to limited internal IT resources and increasing digital exposure. In just the past year, several Michigan public-sector organizations have experienced disruptive ransomware and cyber incidents:

• The City of Flint was forced to take systems offline following a ransomware attack that disrupted online services and internal operations.

• Traverse City and Grand Traverse County both experienced ransomware incidents that impacted government services and required network shutdowns.

• Wayne County, Michigan’s most populous county, faced a major cyberattack that disrupted critical departments and public services.

These incidents highlight how cyberattacks can halt municipal operations, delay resident services, and strain already-limited budgets.

3. Budget, Cost Control & Fiscal Management

Municipal IT leaders must balance security and modernization with shrinking or static budgets.

What this means:

• Proactive IT and cybersecurity planning reduces emergency spend

• Predictable managed IT costs are easier to justify to councils and boards

• Avoiding downtime protects essential public services

How BAE Networks helps: We design right-sized IT and cybersecurity programs that align with municipal budget realities.

4. IT Modernization

Legacy systems remain a challenge for municipalities across Michigan.

Modernization priorities include:

• Replacing unsupported software and infrastructure

• Improving business processes

• Strengthening security during system upgrades

Key takeaway: Modernization improves service delivery, but only when security is built in from the start.

5. Digital Government & Citizen Services

Residents expect online access to services such as payments, permits, and records.

What municipalities must consider:

• Secure citizen portals

• Identity management and authentication

• Accessibility and data privacy

• Cross-department coordination

Digital convenience must not come at the cost of cybersecurity.

6. Accessibility & Compliance

Accessibility is a growing priority due to updated DOJ accessibility requirements.

Why this matters in Michigan:

• Municipal websites and digital services must be accessible to all residents

• Accessibility must be addressed during procurement and development

• Non-compliance carries legal and reputational risk

  
  

7. Identity & Access Management (IAM)

IAM is foundational to both workforce security and citizen-facing systems.

Best practices include:

• Multi-factor authentication (MFA)

• Role-based access controls

• Secure credential management

Strong IAM significantly reduces the risk of data breaches and ransomware.

8. Data Management & Analytics

Michigan municipalities rely on data for planning, budgeting, and public safety.

Key priorities:

• Data governance and ownership

• Secure data architecture

• Business intelligence and analytics

Better data management leads to better decisions and stronger security.

9. Consolidation & Optimization

Consolidating IT systems and services helps reduce complexity and risk.

Benefits for municipalities:

• Lower operational costs

• Improved security visibility

• Simplified management and support

10. Cloud Services

Cloud adoption continues to grow across Michigan municipalities.

Critical considerations:

• Cloud security and governance

• Data privacy and compliance

• Vendor selection and service management

Moving to the cloud shifts security responsibility, but it doesn’t eliminate it.

Preparing Michigan Municipalities for 2026

NASCIO’s 2026 priorities reinforce a clear message for local governments:

• Cybersecurity must be integrated into every IT decision

• Governance and compliance are as important as technology

• Proactive planning reduces both risk and long-term costs

Municipalities that align with these priorities today will be better positioned to serve residents securely and efficiently in 2026 and beyond.

Partner with BAE Networks

BAE Networks partners with Michigan municipalities that need to modernize responsibly, strengthen cybersecurity, and remain compliant in an increasingly complex threat and regulatory landscape.

We help local governments:

• Protect against ransomware and cyber threats through layered security, continuous monitoring, and incident response planning

• Build compliance-driven IT strategies aligned with public-sector requirements, audit expectations, and governance best practices

• Modernize infrastructure and applications securely, including cloud migrations that prioritize data protection, resilience, and cost control

• Manage ongoing IT operations and risk, providing predictable support, strategic guidance, and long-term technology planning

As Michigan municipalities prepare for 2026, technology decisions made today will directly impact service continuity, public trust, and budget stability. BAE Networks works alongside municipal leaders to translate national priorities, like those outlined by NASCIO, into secure, practical, and sustainable IT roadmaps tailored to local needs.

If your municipality is evaluating its IT and cybersecurity priorities for the years ahead, BAE Networks is ready to help you plan with confidence.

Source: National Association of State Chief Information Officers (NASCIO), 2026 State CIO Top 10 Priorities.